Notice2021-25504

Proposed Agency Information Collection Activities; Comment Request

Primary source

Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.

Published
November 23, 2021

Issuing agencies

Federal Reserve System

Abstract

The Board of Governors of the Federal Reserve System (Board) invites comment on a proposal to extend for three years, with revision, the Central Bank Survey of Foreign Exchange and Derivatives Market Activity (FR 3036; OMB No. 7100-0285).

Full Text

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<title>Federal Register, Volume 86 Issue 223 (Tuesday, November 23, 2021)</title>
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[Federal Register Volume 86, Number 223 (Tuesday, November 23, 2021)]
[Notices]
[Pages 66560-66561]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2021-25504]


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FEDERAL RESERVE SYSTEM


Proposed Agency Information Collection Activities; Comment 
Request

AGENCY: Board of Governors of the Federal Reserve System.

ACTION: Notice, request for comment.

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SUMMARY: The Board of Governors of the Federal Reserve System (Board) 
invites comment on a proposal to extend for three years, with revision, 
the Central Bank Survey of Foreign Exchange and Derivatives Market 
Activity (FR 3036; OMB No. 7100-0285).

DATES: Comments must be submitted on or January 24, 2022.

ADDRESSES: You may submit comments, identified by FR 3036, by any of 
the following methods:
    <bullet> Agency Website: <a href="https://www.federalreserve.gov/">https://www.federalreserve.gov/</a>. Follow 
the instructions for submitting comments at <a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a>.
    <bullet> Email: <a href="/cdn-cgi/l/email-protection#44362123376a272b2929212a30370422212021362528362137213632216a232b32"><span class="__cf_email__" data-cfemail="0b796e6c7825686466666e657f784b6d6e6f6e796a67796e786e797d6e256c647d">[email&#160;protected]</span></a>. Include the OMB 
number or FR number in the subject line of the message.
    <bullet> Fax: (202) 452-3819 or (202) 452-3102.
    <bullet> Mail: Ann E. Misback, Secretary, Board of Governors of the 
Federal Reserve System, 20th Street and Constitution Avenue NW, 
Washington, DC 20551.
    All public comments are available from the Board's website at 
<a href="https://www.federalreserve.gov/apps/foia/proposedregs.aspx">https://www.federalreserve.gov/apps/foia/proposedregs.aspx</a> as 
submitted, unless modified for technical reasons or to remove 
personally identifiable information at the commenter's request. 
Accordingly, comments will not be edited to remove any confidential 
business information, identifying information, or contact information. 
Public comments may also be viewed electronically or in paper in Room 
146, 1709 New York Avenue NW, Washington, DC 20006, between 9:00 a.m. 
and 5:00 p.m. on weekdays. For security reasons, the Board requires 
that visitors make an appointment to inspect comments. You may do so by 
calling (202) 452-3684. Upon arrival, visitors will be required to 
present valid government-issued photo identification and to submit to 
security screening in order to inspect and photocopy comments.
    Additionally, commenters may send a copy of their comments to the 
Office of Management and Budget (OMB) Desk Officer for the Federal 
Reserve Board, Office of Information and Regulatory Affairs, Office of 
Management and Budget, New Executive Office Building, Room 10235, 725 
17th Street NW, Washington, DC 20503, or by fax to (202) 395-6974.

FOR FURTHER INFORMATION CONTACT: Federal Reserve Board Clearance 
Officer--Nuha Elmaghrabi--Office of the Chief Data Officer, Board of 
Governors of the Federal Reserve System, Washington, DC 20551, (202) 
452-3829.

SUPPLEMENTARY INFORMATION: On June 15, 1984, OMB delegated to the Board 
authority under the Paperwork Reduction Act (PRA) to approve and assign 
OMB control numbers to collections of information conducted or 
sponsored by the Board. In exercising this delegated authority, the 
Board is directed to take every reasonable step to solicit comment. In 
determining whether to approve a collection of information, the Board 
will consider all comments received from the public and other agencies.
    During the comment period for this proposal, a copy of the proposed 
PRA OMB submission, including the draft reporting form and 
instructions, supporting statement, and other documentation, will be 
made available on the Board's public website at <a href="https://www.federalreserve.gov/apps/reportforms/review.aspx">https://www.federalreserve.gov/apps/reportforms/review.aspx</a> or may be requested 
from the agency clearance officer, whose name appears above. Final 
versions of these documents will be made available at <a href="https://www.reginfo.gov/public/do/PRAMain">https://www.reginfo.gov/public/do/PRAMain</a>, if approved.

Request for Comment on Information Collection Proposal

    The Board invites public comment on the following information 
collection, which is being reviewed under authority delegated by the 
OMB under the PRA. Comments are invited on the following:
    a. Whether the proposed collection of information is necessary for 
the proper performance of the Board's functions, including whether the 
information has practical utility;
    b. The accuracy of the Board's estimate of the burden of the 
proposed information collection, including the validity of the 
methodology and assumptions used;
    c. Ways to enhance the quality, utility, and clarity of the 
information to be collected;
    d. Ways to minimize the burden of information collection on 
respondents, including through the use of automated collection 
techniques or other forms of information technology; and
    e. Estimates of capital or startup costs and costs of operation, 
maintenance, and purchase of services to provide information.
    At the end of the comment period, the comments and recommendations 
received will be analyzed to determine the extent to which the Board 
should modify the proposal.

Proposal Under OMB Delegated Authority To Extend for Three Years, With 
Revision, the Following Information Collection

    Report title: Central Bank Survey of Foreign Exchange and 
Derivatives Market Activity.
    Agency form number: FR 3036.
    OMB control number: 7100-0285.
    Frequency: Triennially.
    Respondents: Commercial banks, brokers and dealers, and U.S. 
offices of foreign banking offices with dealing operations in the U.S.
    Estimated number of respondents: 21.
    Estimated average hours per response: 65.
    Estimated annual burden hours: 1,365.
    General description of report: The Board is a member of the Bank 
for International Settlements (BIS), which compiles aggregate national 
data from each central bank to produce and publish global market 
statistics. The FR 3036 is a component of the U.S. portion of a global 
data collection (the BIS survey) that is conducted by central banks 
once every three years and captures information relating to the volume 
of foreign exchange (FX) transactions. Currently, more than 50

[[Page 66561]]

central banks plan to conduct the BIS survey in 2022. Aggregated data 
from the FR 3036 is compiled and forwarded to the BIS, which uses the 
data to produce and publish these statistics.
    Proposed revisions: The proposal would revise the maturity bands on 
the FR 3036 by replacing the existing ``seven days or less'' category 
with two categories: ``One day'' and ``over one day and up to seven 
days.'' This change would align with current industry standards which, 
based on pre-emptive consultation with a sample of reporting dealers, 
are already included in the back-end systems of respondents. Revisions 
to the maturity bands were originally proposed to the BIS by data users 
seeking greater insight into how overnight trades impact FX turnover 
and are expected to be broadly adopted by nearly all participating 
central banks for the 2022 survey.
    The proposal would add a new item for ``of which back-to-back 
trades'' under the total for spot instruments, and the new items ``of 
which back-to-back trades'' and ``of which compression trades'' for 
several instrument totals: Outright forwards (Table A2), FX swaps 
(Table A2), currency swaps (Table A5), over-the-counter (OTC) options 
(Table A5), FX contracts (Table A5), other products (Table A5 and Table 
B2), forward rate agreements (Table B1), overnight indexed swaps (Table 
B1), other swaps (Table B1), total OTC options (Table B2), and total 
interest rate contracts (Table B2). The proposed changes would provide 
insight into an important facet of the FX market that was omitted from 
prior surveys, and would be particularly valuable to data users given 
that both transaction types have been cited by reporting dealers to 
comprise an increasing share of market turnover. These proposed line 
items were circulated to a selection of reporting dealers and, based on 
feedback received, have been modified to ensure a more limited impact 
on respondent burden.
    The Board also proposes a more significant addition in the form of 
a new Settlement of FX Transactions schedule (Table A7, Settlement of 
Foreign Exchange Transactions) to collect information on FX settlement, 
including a breakdown by counterparty sector, currency pair, and 
settlement method. The new schedule would enable the Board and other 
supervisory authorities to more accurately and regularly monitor FX 
settlement risk--an area of growing importance for financial regulators 
given that the BIS estimates that nearly $9 trillion of FX market 
payments are at risk on a given day. While some countries collected a 
limited set of data on FX settlement during the 2019 survey, it is the 
broad view of global regulatory authorities that more granular data is 
needed to effectively monitor risks to financial stability that may 
arise from FX settlement.
    Legal authorization and confidentiality: The FR 3036 is authorized 
pursuant to sections 2A and 12A of the Federal Reserve Act (FRA). 
Section 2A of the FRA requires that the Board and the Federal Open 
Market Committee (FOMC) maintain long-run growth of the monetary and 
credit aggregates commensurate with the economy's long run potential to 
increase production, so as to promote effectively the goals of maximum 
employment, stable prices, and moderate long-term interest rates.\1\ 
Under section 12A of the FRA, the FOMC is required to implement 
regulations relating to the open market operations conducted by Federal 
Reserve Banks. Those transactions must be governed with a view to 
accommodating commerce and business and with regard to their bearing 
upon the general credit situation of the country.\2\ The Board and the 
FOMC use the information obtained from the FR 3036 to help fulfill 
these obligations. The FR 3036 is voluntary.
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    \1\ 12 U.S.C. 225a.
    \2\ 12 U.S.C. 263.
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    Individual firm information collected on the FR 3036 is considered 
confidential to the extent it constitutes nonpublic commercial or 
financial information, which is both customarily and actually treated 
as private by the respondent. Therefore, this information may be kept 
confidential under exemption 4 of the Freedom of Information Act, which 
exempts ``trade secrets and commercial or financial information 
obtained from a person and privileged or confidential.'' \3\ If it 
should be determined that any information collected on the FR 3036 must 
be released, other than in the aggregate in ways that will not reveal 
the amounts reported by any one institution, respondents will be 
notified. Aggregated FR 3036 data is compiled and forwarded to the BIS, 
which publishes global market statistics that are aggregates of 
national data from the Federal Reserve and other central banks.
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    \3\ 5 U.S.C. 552(b)(4).

    Board of Governors of the Federal Reserve System, November 17, 
2021.
Michele Taylor Fennell,
Deputy Associate Secretary of the Board.
[FR Doc. 2021-25504 Filed 11-22-21; 8:45 am]
BILLING CODE 6210-01-P


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